By Lisa Hostetler Brown
While it’s common to plan for what happens to your belongings after you’re gone, have you thought about who will care for you and manage your affairs if you’re unable to do so yourself? Planning ahead for potential incapacity is just as important—if not more so—than deciding where your possessions will go. Two essential documents to consider are the Durable Power of Attorney for Finances and the Healthcare Power of Attorney.
The Durable Power of Attorney for Finances
Imagine being unable to pay bills, manage your bank accounts, or handle investments due to illness or accident. Without a plan, your loved ones might face legal obstacles and financial stress. A Durable Power of Attorney for Finances lets you designate a trusted person—your agent—to manage your financial matters if you become incapacitated. This document is “durable” because it remains in effect even if you’re unable to make decisions. Your agent can:
- Pay bills and handle banking transactions
- Manage investments and real estate
- File taxes on your behalf
- Make decisions regarding retirement benefits
- And much more!
By setting up this document, you ensure that your finances are managed according to your wishes, preventing delays or legal complications.
The Healthcare Power of Attorney
Medical emergencies can happen unexpectedly, and decisions need to be made quickly. A Healthcare Power of Attorney lets you appoint someone to make medical decisions on your behalf if you cannot communicate. Your healthcare agent can:
- Consult with doctors and make treatment decisions
- Choose healthcare providers and facilities
- Approve or refuse medical procedures
This document ensures your medical care aligns with your values and wishes, while relieving your family of the burden of making tough decisions without guidance.
Why These Documents Matter
- Maintain Control: Even if you’re unable to speak for yourself, these documents let your voice be heard through your chosen representatives.
- Prevent Legal Complications: Without these documents, your family may have to go through a lengthy, costly court process to gain authority over your affairs.
- Reduce Family Stress: Clear instructions can reduce confusion and conflicts among loved ones during challenging times.
- Protect Your Assets: Proper management of your finances helps preserve assets for your care and future generations.
Taking the Next Steps
- Choose the Right People: Select trustworthy, responsible agents who understand your values. Discuss your wishes openly with them.
- Consult a Professional: Work with an estate planning attorney to ensure your documents meet your specific needs.
- Communicate Your Plan: Inform family members and others about your decisions to prevent misunderstandings.
- Review and Update as Needed: Life changes, and so should your documents. Periodically review them to ensure they still reflect your wishes.
Peace of Mind for You and Your Loved Ones
Estate planning isn’t just about distributing belongings after you’re gone—it’s also about ensuring your well-being and easing the burden on those who care for you. By taking these steps now, you’re investing in peace of mind for the future. Start planning today with an elder law attorney to protect both yourself and your loved ones.
